Mp_cn812
March 27, 2015
Weekly Cotton Market Review
Average spot cotton quotations were 209 points higher than the previous week,
according to the USDA, Agricultural Marketing Service’s Cotton and Tobacco
Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike
35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated
markets averaged 61.62 cents per pound for the week ended Thursday, March 26,
2015. The weekly average was up from 59.53 cents last week, but lower than the
87.26 cents reported the corresponding period a year ago. Daily average quotations
ranged from a low of 61.05 cents on Friday, March 20 to a high of 62.29 cents on
Monday, March 23. Spot transactions reported in the Daily Spot Cotton Quotations
for the week ended March 26 totaled 49,402 bales. This compares to 33,742 bales
reported last week and 3,729 bales reported a year ago. Total spot transactions for
the season were 1,916,778 bales compared to 1,243,161 bales the corresponding
week a year ago. The ICE May settlement prices ended the week at 63.08 cents,
compared to 62.95 cents last week.
Prices are in effect from March 27-April 2, 2015
Adjustment World Price (AWP) 48.47 ELS Competitiveness Payment 0.00
Loan Deficiency Payment (LDP) 3.53 Fine Count Adjustment 2013 Crop 0.66
Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2014 Crop 0.56
Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #7
FOR UPLAND COTTON
March 26, 2015
The Department of Agriculture's Commodity Credit Corporation announced a
special import quota for upland cotton that permits importation of a quantity of
upland cotton equal to one week’s domestic mill use. The quota will be
established on April 2, 2015 allowing importation of 14,636,612 kilograms
(67,225 bales) of upland cotton.
Quota number 7 will be established as of April 2, 2015 and will apply to
upland cotton purchased not later than June 30, 2015, and entered into the U.S. not
later than September 28, 2015. The quota is equivalent to one week's
consumption of cotton by domestic mills at the seasonally-adjusted average rate
for the period July 2014 through September 2014, the most recent three months
for which data are available.
Future quotas, in addition to the quantity announced, will be established if
price conditions warrant.
Regional Summaries Regional Summaries
Southeastern Markets
Spot cotton trading was moderate. Supplies and
producer offerings were light. Demand was
moderate. Average local spot prices were higher.
Trading of CCC-loan equities was inactive.
Overcast conditions, combined with daily
intermittent mist and light moisture, was observed
across most of Alabama, the Florida panhandle, and
south Georgia during the week. Weekly accumulated
rainfall totals generally measured less than one inch,
but higher totals were recorded in localized areas that
experienced heavier shower activity. Partly cloudy to
overcast conditions prevailed in the Carolinas and
Virginia during the period with scattered shower
activity, but lesser precipitation totals were generally
observed. Daytime high temperatures peaked into the
low 80s in the Gulf Coast region, but more moderate
temperatures in the 60s to 70s prevailed in the upper
southeast. A cold front was forecast to enter the
region over the weekend with the potential to bring a
light freeze to some areas. Field preparations
commenced in the Florida panhandle, areas of south
Alabama, and Georgia where soils were firm enough
to support equipment. Producers conducted routine
maintenance on farm equipment and considered
spring planting options.
South Central Markets
North Delta
Spot cotton trading was inactive. Supplies of
available cotton were light. Demand was light.
Average local spot prices were higher. Trading of
CCC-loan equities was inactive. No forward
contracting was reported.
Warm, clear weather prevailed early week. The
sunshine helped remove some standing water from
fields flooded by recent rains. A cold front brought
more moisture to the region late week. Up to one
inch of rain was reported. A flood advisory remained
in effect for all counties in Arkansas and Tennessee,
which border the Mississippi River. Daytime high
temperatures were in the 50s to the low 70s.
Overnight lows were in the 30s to 40s. According to
the National Agricultural Statistics Service, soil
moisture levels were mostly at surplus levels, which
indicated standing water in low-lying fields.
Producers hoped for an extended period of warm,
clear weather so saturated soils could dry enough to
support equipment.
South Delta
Spot cotton trading was slow. Supplies of available
cotton were light. Demand was moderate. Average
local spot prices were higher. Trading of CCC-loan
equities was inactive. No forward contracting was
reported.
Spring-like conditions prevailed during most of
the reporting period. A storm system brought more
rain to the region late week. Daytime high
temperatures were in the 70s to low 80s. Overnight
lows were in the 40s to 50s. Up to one inch of
precipitation was reported in Louisiana and
Mississippi. A flood advisory remained in effect for
all counties in Mississippi and Louisiana, which
border the Mississippi River. According to the
National Agricultural Statistics Service, soil moisture
levels were mostly at surplus levels, which indicated
standing water in low-lying fields. Producers hoped
for an extended period of dry weather so saturated
soils could dry enough to support equipment.
Southwestern Markets
East Texas-Oklahoma
Spot cotton trading was moderate. Supplies, demand
and producer offerings were light. Average local spot
prices were higher. Trading of CCC-loan equities
was slow. Foreign mill inquiries were light to
moderate.
In Texas, field preparations continued in areas
where the soils were dry and able to support
equipment. The Rio Grande Valley expects a late
season as producers were sidelined another week
because of wet field conditions. In Kansas, the
planting season was about six weeks away and
little to no seed orders had been received. The
southwestern counties have more underground
moisture compared to last year, but the moisture is
not deep. Light rains on March 25 measured
about one-fourth of an inch of precipitation. In
Oklahoma, a cold front brought a trace to one inch
of rainfall on March 25, which will help improve
subsoil moisture. The storms missed the
southwestern cotton-growing counties that
remained in extreme to exceptional drought
Regional Summaries Regional Summaries
conditions, according to the U.S. Drought Monitor. Regional meetings were attended.
West Texas
Spot cotton trading was moderate. Supplies were moderate while demand and producer offerings were light.
Average local spot prices were higher. Trading of CCC-loan equities was slow. Foreign mill inquiries were
light to moderate.
Pre-plant expenses were minimized by limiting fertilizer applications and the number of times equipment
moves up and down the rows. Winter weed populations were proactively managed with herbicidal treatments.
Fieldwork made good progress until a cold front entered the region on March 25. Local reports indicated that
winds gusted to 53 miles per hour and caused blowing dust. Industry experts reported that some modules in
the Southern Rolling Plains will remain in fields until space at the gin yards become available. The Abilene
Classing Office continued to grade samples. The Concho Valley Cotton Conference and other regional
meetings were held.
Western Markets
Desert Southwest (DSW)
Spot cotton trading was inactive. Producer offerings were light, with mostly rood cotton offered. Supply and
demand were light. Average local spot prices were higher. No forward contracting or domestic mill activity
was reported. Foreign mill inquiries were light.
Above-average temperatures were prevalent with highs in the mid-to-high 80s for Arizona. Planting in
Yuma, Arizona was around 90 percent completed. Seedlings thrived under sunny, clear conditions. The crop
progressed normally. No insect pressure was reported. No planting was reported for central Arizona, but
field preparations were active. Producers continued with pre-plant irrigations. Local sources reported planted
acreage to be comparable to last year for central Arizona. Some producers decided to plant Upland instead of
American Pima as the “save seed” contracts offered by cottonseed companies were lucrative. A couple of
producers intend to plant Acala varieties to test against the Arizona heat and for roller-ginning. Temperatures
reached the low-to-mid 80s for New Mexico and El Paso, Texas. Fieldwork consisted of pre-plant irrigations.
Irrigation water was limited from the lower Rio Grande River around El Paso, Texas. Fieldwork continued.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices
were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light
The repercussions of the West Coast ports slow down continued for merchants. Large volumes of cotton
slated for December shipment began leaving the West Coast ports in the period. This is several months after
the scheduled import quota deadline, thus requiring tariffs to be paid on the cotton.
Unseasonably, warm temperatures continued. Temperatures reached the mid-to-high 70s. Initial planting
began in the period, with producers still considering options. Weed control is on-going for Merced and
Madera Counties, which are northern areas that received moisture in the past couple of weeks.
Regional Summaries Regional Summaries
American Pima (AP)
Spot cotton trading was slow. Supplies were moderate. Demand was light. Average local spot prices were
steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries increased, with
interest from China and India. Mills inquired for low mike and strength. The repercussions of the West Coast
ports slow down continued for merchants. Large volumes of cotton slated for December shipment began
leaving the West Coast ports in the period. This is several months after the scheduled import quota deadline,
thus requiring tariffs to be paid on the cotton.
Temperatures were unseasonably warm in the mid-70s to mid-80s for Arizona and California. Planting
neared completion in Yuma, Arizona. Seedlings were up to a stand and progressed normally. Central Arizona
producers began initial planting in the period. According to sources, Arizona producers intend to plant around
15,000 to 17,000 acres of AP, most of which will be planted in Safford, Arizona. Planting began in the San
Joaquin Valley. No planting was reported in New Mexico and El Paso, Texas. Pre-plant irrigations were
on-going.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 for September through
December delivery. No sales were reported. Sources indicated most mills had covered their
immediate-to-nearby raw cotton needs. Yarn demand was moderate. Most mills operated five to seven days.
Inquiries through export channels were moderate. Demand was best for any discounted or low-grade styles
of cotton. No sales were reported.
Regional Price Information Regional Price Information
Southeastern Markets
..
A moderate volume of color mostly 31 and 41, leaf 2-4, staple 34-38, mike 43-49, strength 28-31, and
uniformity 80-82 sold for 67.25 to 68.00 cents per pound, FOB car/truck, Georgia terms
(Rule 5, compression charges paid, 30 days free storage).
..
Mixed lots containing color 44 and better, leaf 2-4, staple 35 and 36, mike 43-49, strength 26-29, and
uniformity 80-82 sold for around 62.25 cents, same terms as above.
..
A moderate volume of color 41, leaf 3-5, staple 33-35, mike 43-49, strength 29-31, and uniformity 80-82
sold for around 250 points off ICE May futures, same terms as above.
..
A light volume of color 51, leaf 4 and 5, staple 32-35, mike 43-49, strength 28-31, and uniformity 80-82
sold for around 425 points off ICE May futures, same terms as above.
South Central Markets
North Delta
..
A light volume of color 31 and better, leaf 4 and better, staple 34 and longer, mike 45-48, strength 29-33,
and uniformity 80-84 traded at around 64.00 cents per pound, FOB car/truck (Rule 5, compression
charges paid).
South Delta
..
A light volume of color 41 and better, leaf 6 and better, staple 37, mike 43-48, strength 29-33, and
uniformity 81-84 traded at around 60.75 cents per pound, FOB car/truck (Rule 5, compression charges
paid).
..
A moderate volume of color 31 and better, leaf 3 and better, staple 34, mike 50-56, strength 24-33, and
uniformity 78-82 traded at around 59.50 cents, same terms as above.
Southwestern Markets
East Texas
..
In Texas, a moderate volume of color 31 and better, leaf 2 and 3, staple 36, mike 35-48, strength 27-33,
and uniformity 78-82 sold for around 69.00 cents per pound, FOB car/truck (compression charges not
paid).
..
Mixed lots containing a heavy volume of color 41 and better, leaf 4 and better, staple 35 and longer,
mike 39-52, strength 26-32, uniformity 78-84, and 100 percent extraneous matter traded for around
49.00 cents, FOB car/truck (compression charges not paid).
..
In Oklahoma, mixed lots containing a heavy volume of color 41 and better, leaf 2 and 3, staple 34 and
longer, mike 38-52, strength 26-31, uniformity 77-82, and 75 percent extraneous matter sold around
54.00 cents, same terms as above.
..
A light volume of CCC-loan equities traded for 6.00 to 13.00 cents.
Regional Price Information Regional Price Information
Southwestern Markets cont.
West Texas
..
A heavy volume of mostly color 11 and 21, leaf 3 and better, staple 37 and longer, mike 30-49, strength
27-32, and uniformity 79-82 sold for around 68.75 cents per pound, FOB car/truck (compression charges
not paid).
..
Mixed lots containing a heavy volume of color 31 and better, leaf 3 and better, staple 36 and longer, mike
33-49, strength 27-32, uniformity 77-83, and 25 percent extraneous matter sold for around 66.25 cents,
same terms as above.
..
Mixed lots containing a heavy volume of color 31 and better, mostly leaf 4 and 5, staple 35 and longer,
mike averaging 39.4, strength averaging 29.5, uniformity averaging 80.6, and 75 percent extraneous
matter sold for around 55.75 cents, same terms as above.
..
A light volume of CCC-loan equities traded for 6.00 to 8.00 cents.
Western Markets
Desert Southwest
..
No trading activity was reported.
San Joaquin Valley
..
No trading activity was reported.
American Pima
..
A light volume of color 2, leaf 2, and staple 46 was sold for around 154.00 cents per pound, free, FOB
warehouse.
Net Upland sales of 177,600 RB for 2014/2015 were down 26 percent from the previous week, but up noticeably from the prior 4-week average. Increases
were reported for China (76,700 RB, including 10,700 RB switched from Vietnam and decreases of 1,400 RB)T urkey (31,000 RB), Mexico (12,400 RB),
South Korea (9,000 RB), Bangladesh (8,400 RB), and T aiwan (8,000 RB). Decreases were reported for unknown destinations (1,100 RB). Net sales of
21,000 RB for 2015/2016 were reported primarily for T urkey (5,400 RB), South Korea (5,300 RB), Mexico (4,900 RB), and Vietnam (4,400 RB).
Exports of 290,300 RB were down 2 percent from the previous week, but unchanged from the prior 4-week average. T he primary destinations were China
(86,100 RB), Vietnam (53,500 RB), T urkey (25,600 RB), Indonesia (23,400 RB), and South Korea (18,600 RB). Net American Pima sales of 15,300 RB
for 2014/2015--a marketing-year high--were up noticeably from the previous week and from the prior 4-week average. Increases reported for China
(10,600 RB), Hong Kong (1,400 RB), Bangladesh (1,300 RB), and Egypt (1,300 RB), were partially offset by decreases for Germany (200 RB). Exports of
12,500 RB were down 18 percent from the previous week, but up 59 percent from the prior 4-week average. T he primary destinations were China (7,300
RB), India (1,700 RB), Pakistan (1,600 RB), and Japan (600 RB).
Optional Origin Sales: For 2014/2015, outstanding optional origin sales total 16,200 RB, and are for T hailand (11,300 RB), South Korea (4,600 RB), and
Vietnam (300 RB).
Exports for Own Account: Exports for own account to China totaling 5,000 RB were applied to new or outstanding sales. T he current exports for own
account balance is 42,400 RB, and is for China (40,600 RB) and T urkey (1,800 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. March 26, 2015
NOT E: Data may not add due t o rounding.